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Intelligent Transport Systems Lecture 2 – Logistics & Freight Management  TNK052/TNSL06 Lars Backåker PhD. Student ITN/K TS Linköping University

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Intelligent TransportSystems 

Lecture 2 – Logistics & FreightManagement TNK052/TNSL06

Lars Backåker

PhD. Student ITN/KTS Linköping University

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Lars Backåker

• Firefighter, Military Services Agency Skövde

• Communication and Transport Systems, LIUNorrköping

• Operations Management and Logistics, Eindhoven

• Inventory Record Accuracy, Volvo CEEskilstuna

• Research Assistant, LIU Norrköping•

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Slide colours

New chapter Chapter content Example / Literature

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Agenda

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Introduction

Part 1

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Purpose

• Provide insights and voke interestinto possibilities of ITS-applicationswithin the logistic area

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Learning outcomes

• Basic knowledge about availabletechnologies

• Benefits of ITS within Logistics• Drawbacks and complexities

(Technology)• Ongoing research• Cases studies (possibilities)•

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Definitions

• Intelligent Transport Systems (ITS)• “ITS are the marriage of information and

communication technologies with the vehiclesand networks that move people and goods.

Intelligent because they bring extra knowledgeto travellersand operators”•

• Logistics• ”Logistics is the process of strategically

managing the procurement, movement andstorage of materials, parts and finishedinventory (and related information flows)through the organization and its marketingchannels in such a way that current and future

profitability are maximized through the cost-effective fulfilment of orders.”

Christophers M. Logistics and Supply ChainManagement http://www.infrastructure.gov.au/department/annual_report/2001_2002/ Glossary.aspx 

Large scope -> Total costsince 1960

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The need for ITS

• Increased complexity of supplychains

• Continiously increasing transportvolumes

• Increased demand and specificrequirements from end-customers

http://nui.epp.eurostat.ec.europa.eu/nui/show.do?

dataset=tran_hv_frtra&lang=en

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A lot of companies set up high expectationson themself 

Missions & Visions

ort-related products and services of superior quality, safety and environmental

VolvoGroup

erformance, grid reliability and productivity whilst saving energy and lowering environmental impact.product, systems and service offering.and skilled people and offering employees an attractive, global work environment.iness ethics are at the core of our market offering and our own operations.

tomers to use electrical power efficiently, to increase industrial productivity and to lower environment

ABBGroup

and logisticsability and market share.”

mers – particularly those that are global brands – have increasingly rigorous expectations of their sup

ring highest quality express and logistics solutions based on strong local expertise combined with the

DHL

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Consider…

Leadtimereduction

Inventory

levels

Demandfluctations

High delivery

precision

Supply chainsynchronization

Sufficient inventory recordaccuracy

Gods

tracking Total costreduction

Fuelefficiency Prevent theft and

counterfieting

Bullwhipeffect

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ITS enables

• ITS enables superior track and traceapplications

ITS enables visibility and transparencythrough out supply chains•

• ITS enables real time monitoring and

support applications•

• ITS enables reduced energyconsumptions and reduced

environmental impacts

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ExampleVisibility & Transparency

• Cisco• 1999: Increase in demand for

computer network products•

• 2001: Demand suddenly drops

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Technologies

Part 2

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Technologies

• Well known and since long time agoestablished techniques enablesIntelligent Transport Systems: – Barcodes – Radio Frequency Identification (RFID) – Global Positioning System (GPS) –

Global System for MobileCommunications (GSM) – General Packet Radio Services (GPRS) – Databases (Storage capabilities)

 – Etc.

Do you remember the definition?

”…information and commuication techno

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Hardware and Software

•  To establish an ITS system the softwareis just as important as the hardware

When hardware is combined with”intelligent software” limitationsbecomes few

For now, several applications/systemsassociated with freight managementand logistic processes in general areconstructed within a diversity of areas

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ExampleIntelligent software

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Literature

• More information• Article 3•

• Content•  Transportation Quality Monitor Using

Sensor Active RFID•

• Authors• Kohei and Masashi•

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Barcodes

• Barcodes and related numbering standardsare still the most widely accepted methodfor product identification (mechanizedinventory)

• Major numbering standards: – UPC (Universial Product Code) – EAN (European Article Numbering)

• Barcodes offers a relative low cost fortagging products, which makes iteconomically defencible, even whenattatched on ”non-returned” products,boxes and loading units ending up wasted

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Barcodes

• Reading data from barcodes requiresline-of-sight

• However, if in line-of-sight, scanners inmore expensive segments can readbarcodes from a distance of several

meters•

• Briefly, data in barcodes is stored using

different line patterns and can beread usin infra-scanners

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Radio FrequencyIdentification

• Description• Electronic identification and

positioning technique. RFID is

considered to be a epic leap infunctionality and performance incomparison to barcode technology.

• Especially since RFID can operatewithout line-of-sight, making itperfect for supply chain activities

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Radio FrequencyIdentification

•  Technology• In general the system consists of 

several transponders and fixeddata readers communicating by theuse of electromagnetic waves.

•  The transponder (a.k.a tag) hasboth the possibility to transmitt andrespond.

trans tran

s

pond pon

d

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Radio FrequencyIdentification

•  Tag types•  Today there are two types of tags

known as active tags and passivetags.

Kaul C. and Korten S.(2008)

Shepard S. (2005)

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Literature

• More information• Article 4, 5 and 9•

Content• Impacts of RFID on supply chaindynamics and costs.

Authors• Lee, Cheng and Leung• Ustundag and Tanyas• Coltman and Gadh•

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Addional technologies

• GSM• GPRS•

Wireless networking• GPS

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Challenge One(ITS – System Overview)

Productionunit

Rawmaterials

Distribution

centers

Retailers

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Well known issues of ITSwithin Logistics

• Logistic activities puts special requirements on theimplementation of RFID equipment :

 – Housing for tags – Data encryption – Personal integrity

• Also the placement of ITS equipment is crucial for keepingdown unnecesary maintain costs introduced with the ruff handling of e.g loading units

ROI is considered to be low and sharing investments costbetween actors is allways a major concern•

• Barcodes can only be written once but read as manytimes wanted (write-once-read-many)

 –

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ExampleWal-Mart

• 2003 : Implementation decision•

2005: Reported massive investmentcosts and no financial benefits•

2007: 4 distribution centers runningRFID, mentioned to experiencebenefits of the implemenation

S. Mueller and C. Tinnefeld(2007)

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Example of possibilities

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Overview

•  The following ITS case studies arebriefly presented: – Farm Management – Distribution – Food Processing Industry – Flight Industry

 – Forest Industry – Further projects of interest –

 –

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Farm Management

• Description• ITS-systems for increased

effectiveness of diary farmproduction

• Logistic activities – Material administration – Production planning and monitoring – Quality control

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Literature

• More information• Article 1•

• Content•  Two Australian case studies

conducted for analyzing RFID-impactson diary farms

• Authors•  Trevarthen and Katina•

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Distribution

• Description• ITS-systems for increased safety

and reduced environmental impact in

distribution processes•

• Logistic activities –

Material administration – Quality assurance (e.g correct

temperature) – Product protection

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Distribution

• Need for ITS – Energy consumption must be reduced – Big focus on driver safety –

Vehicle and gods theft prevention isimportant•

• Ongoing research• Several projects on driving safety and

advance driving assistance systems(ADAS), technologies for car theftprevention and navigation

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ExampleDistribution

Provide routeguidance anddelivery

information

Monitor fuelefficiencey andprovide driving

recommendations

Invehicle GPSunit

E.g PDA-unitwith softwareand sensors

for eco-driving

Advancesensoring andalert systems

Managingvehicledistance, speed

etc. whiledriving

ABS, ACC, ISA

      T     e      c 

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Vehicle theftand damageprevention

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Food Processing Industry

• Description• ITS-systems for food traceability

and monitoring throughout the

supply chain –

• Logistic activities – Material administration – Production planning and monitoring – Quality control => Safety issue!

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Food Processing Industry

• Need for ITS – Customers want to know what they are

eating and the have knowledge aboutthe foods origin

 – Effective inventory managementrequires visibility – High quality of food is becoming crucial

for good business (e.g monitoringtemperature)

• Ongoing research• Information sharing and traceability

possibilities across full range of supplychains members to increase safety and

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Food Processing IndustryExample

Identification of individualanimals

already atfarmer

Inventorymanagementaccording to

current stocklevels

RFID-taggingwith adiversity of 

systemconfigurations

RFID providesaccurateinformation

about actualinventorylevels

Databaseswith loggedinformation

from RFID-tags

Monitoring of food quality(temperature,

box sealingetc.)

RFIDequipmentconfigured

with relevantsensors, PDA-units anddatabases

      T     e      c 

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l     o 

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 Tracing foodbackwards andforwards in

supply chain

All the way down to individual cuts

E. Abad a, F. Palacio b, M. Nuin c, A. González de Zárate c, A. Juarros a, J.M. Gómez b,S. Marco b (2009)

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Literature

• More information• Article 2, 6 and 7•

Content• Introducing networked RFID and real timemonitoring in supply chains

Authors• Asimakopoulos, Louvros and Triantafillou• P. Jones• Osvald and Zadnik Stirn•

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Flight Industry

• Description• ITS-systems within the flight

industry to increase customer service –

• Logistic activities – Freight management (luggage)

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Flight Industry

• Need for ITS – Traceability – Visibility (inventory management)

 – Positioning – Identification

Ongoing research• Impacts and benefits of RFID-systems for total baggage control

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ExampleFlight Industry

Luggagemarkup

Luggagetracking

RFID, PDA/PCinterface

RFID canprovideaccurate

informationabout currentluggageposition

Databaseswith loggedinformation

from RFID-tags

Sendinginformation tocustomers

conceringdealys andarrival times

RFID incombinationwith

mobilphones,databasetechnology,SMS

      T     e      c 

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Monitoringluggagedelivery

process

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Literature

• More information• Article 8•

Content•  Tells the story of Delta Airlines and theirstruggling to stay in business. Also putsbarcode technology in relation to RFIDtechnology

• Authors• Wyld, Jones and Totten•

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Forest Industry

• Description• ITS-systems all the way from forest

harvesting to finished products –

• Logistic activities – Material administration –

Production planning and monitoring – Backtracing (origin of timber) – Positioning and mapping of harvester

advancement•

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Forest Industry

• Need for ITS – Traceability – Visibility (inventory management)

 – Monitoring (e.g temperature)•

• Ongoing research•

Informations sharing andtraceability possibilities across fullrange of supply chains members

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ExampleForest Industry

Manual orhighlymechanized

harvesting

Forwarder iscollecting woodpiles

RFID-tags,PDA-units andattachment

devices

Fixed RFID-readers on theloading unit of 

the forwarder

Materialadministrationin production

and deliveryprocess

RFID,databases

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Wood piles aretransported tothe production

unit

RFID, ADAS-systems, GPSnavigation etc.

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Literature

• More information• Article 10•

Content• Case studie of RFID implementation

within the forest industry. Possibilitesand complexities

• Authors• S. Korten and C . Kaul•

Further projects of

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• MIT• Interplanetary Supply Chains ( 

http://spacelogistics.mit.edu/research.htm )

• C - I. Hsu, H - H. Shih, W - C. Wang•  Applying RFID to Reduce Delay in Import Cargo Customs

Clearance Process

Further projects of interest

http://spacelogistics.mit.edu/commer cial.htm

 The Lunar Network (SupplyChain)

Secure Inventory Level(Correct product at the right place in the r

ibility is essential for succes!inventory levels, are products intact and ready to use)

ccured due to products beeing missplaced

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Challenge Two(Logistic Activities witin harbours)

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Summary

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Final Thoughts

• Barcodes still has the advantage of being inexpensive, which makesthem preferable for non-returnable

and consumable products•

•  Though, RFID (when costs are cut)

will enable several additionalfunctionalities and opportunitieswithin the logistic area compared to

barcodes

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Final Thoughts

•  Therefore, RFID is suitable for e.gcontainer tracking, tracing andsensing

• Especially when loading units arereused (circled) in the supply chain

• Concerning choice of tag types thepassive once are still prefered by

the industry

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2009-08-13 Lars Backåker Ph.D StudentITN/KTS Linköping University 55

Final Thoughts

• If you are to believe journalists, theimplementation rate of RFID isslower and lower than expected

• [Link]•

• Research activity within the area of 

ITS is greater than ever and the ITSWorld congress is held here inStockholm in late September

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Reflections?Questions?

Commen

ts?

Feedba

ck? Additionals?

Criticis

m?

Points?

Notice?

Review?

Interpretations?

Issues?

Reasoning?

Notes?

Insights?

Relations?

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Summary of literature

1. A. Trevarthen, K. Michael• The RFID-Enabled Diary Farm: Towards Total Farm Management 

•2. G. Asimakopoulos, S. Louvros, V. Triantafillou• METATRO: A Real Time RFID Enabled Haulage Monitoring System for Perishable Comestibles

•3. K. Mizuno, M. Shimizu• Transportation Quality Monitor Using Sensor Active RFID

•4. Y. M. Lee, F. Cheng, Y. T. Leung•

Exploring the Impact of RFID on Supply Chain Dynamics•5. A. Ustundag, M. Tanyas• The Impacts of Radio Frequency Identification (RFID) Technology on Supply Chain Costs

•6. P. Jones• Networked RFID for use in the Food Chain

•7. A. Osvald, L. Z. Stirn•  A Vehicle Routing Algoritm for the Distribution of Fresh Vegetables and Similar Perishable Food

•8. D. C. Wyld, M. A. Jones, J. W. Totten• Where is my Suitcase? RFID and Airline Customer Service

•9. T. Coltman, R. Gadh• RFID and Supply Chain Managemnet: Introduction to the Special

•10. S. Korten, C. Kaul•  Application of RFID (Radio Frequency Identification) in the Timber Supply Chain•